Tax rate
This query is : Resolved
Kollipara Sundaraiah
(Querist)
14 April 2019
Sir,
One registered composite dealer selling of ice creams shop running.
Sale turnover jan-march 3 lacs.
Tax payable rate 1 or 5 percent.
One registered composite dealer selling of ice creams shop running.
Sale turnover jan-march 3 lacs.
Tax payable rate 1 or 5 percent.
CA Anita Bhadra
(Expert)
14 April 2019
What is you query ? Please elaborate the question bit more
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Kollipara Sundaraiah
(Querist)
15 April 2019
madam modify query
CA Anita Bhadra
(Expert)
15 April 2019
Tax Rate is 5 %
GST Rate for composition dealer is 5% of the turnover for restaurant services
Selling ice cream will cover under restaurant services - Supply, of goods, being food or any other article for human consumption or drink, where such supply or service is for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied is restaurant services .
However , manufacture of Ice Cream can not opt for composition scheme
GST Rate for composition dealer is 5% of the turnover for restaurant services
Selling ice cream will cover under restaurant services - Supply, of goods, being food or any other article for human consumption or drink, where such supply or service is for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied is restaurant services .
However , manufacture of Ice Cream can not opt for composition scheme
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CA Anita Bhadra
(Expert)
15 April 2019
https://gst.taxmann.com/fileopennew.aspx?id=101010000000187646&mode=home&page=
Recent AAR Ruling may change the answer given above .
Recent AAR Ruling may change the answer given above .
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Kollipara Sundaraiah
(Querist)
15 April 2019
madam thanks your reply present tax rate ? percent paid please reply
26 July 2025
You're welcome! Here's the **correct and current GST tax rate** clarification for your situation:
---
### ✅ **Case**:
* You are a **registered composition dealer**
* Running an **ice cream shop**
* Turnover (Jan–March): ₹3 lakhs
---
### 🚫 **Important Rule**:
**Manufacturers and sellers of ice cream are **NOT eligible** for the composition scheme** under Section 10 of CGST Act.
#### ❌ Ineligible Goods under Composition Scheme:
As per **CGST (Amendment) Rules**, **manufacture of:**
1. **Ice cream**
2. **Pan masala**
3. **Tobacco & tobacco substitutes**
👉 are **excluded** from availing the composition scheme.
📌 **Notification Reference**:
> Notification No. 14/2019 – Central Tax dated 7th March 2019
> Effective from 1st April 2019
> [Link](https://cbic-gst.gov.in/pdf/central-tax/notfctn-14-central-tax-english-2019.pdf)
---
### 🎯 **Applicable Tax Rate for Ice Cream Shop (Regular Scheme):**
| Particulars | GST Rate |
| ----------------------------------- | --------------------------- |
| Ice Cream (Sale, not manufacturing) | **18% (CGST 9% + SGST 9%)** |
* If you're purchasing packed/branded ice cream and **selling**, GST = **18%**
* **Composition tax rate (1% or 5%) does NOT apply** to ice cream shops
---
### ❗Summary for You:
* ❌ **Composition scheme @1% or 5% is not allowed**
* ✅ You must register as **regular dealer**
* ✅ Charge **18% GST** on sales
* ✅ File **GSTR-1** and **GSTR-3B** returns
---
---
### ✅ **Case**:
* You are a **registered composition dealer**
* Running an **ice cream shop**
* Turnover (Jan–March): ₹3 lakhs
---
### 🚫 **Important Rule**:
**Manufacturers and sellers of ice cream are **NOT eligible** for the composition scheme** under Section 10 of CGST Act.
#### ❌ Ineligible Goods under Composition Scheme:
As per **CGST (Amendment) Rules**, **manufacture of:**
1. **Ice cream**
2. **Pan masala**
3. **Tobacco & tobacco substitutes**
👉 are **excluded** from availing the composition scheme.
📌 **Notification Reference**:
> Notification No. 14/2019 – Central Tax dated 7th March 2019
> Effective from 1st April 2019
> [Link](https://cbic-gst.gov.in/pdf/central-tax/notfctn-14-central-tax-english-2019.pdf)
---
### 🎯 **Applicable Tax Rate for Ice Cream Shop (Regular Scheme):**
| Particulars | GST Rate |
| ----------------------------------- | --------------------------- |
| Ice Cream (Sale, not manufacturing) | **18% (CGST 9% + SGST 9%)** |
* If you're purchasing packed/branded ice cream and **selling**, GST = **18%**
* **Composition tax rate (1% or 5%) does NOT apply** to ice cream shops
---
### ❗Summary for You:
* ❌ **Composition scheme @1% or 5% is not allowed**
* ✅ You must register as **regular dealer**
* ✅ Charge **18% GST** on sales
* ✅ File **GSTR-1** and **GSTR-3B** returns
---
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